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Equal weight works well in strong times. Expect the largest caps to outperform otherwise. I hit a home-run for my kids years ago by putting some of their funds in QQQ, the NASDAQ 100 index fund.
It would be quite a math task to compute annual rate of return on my LEG. As I recall it was originally acquired as a high yielding bond which had the kicker of being convertible into the then-very obscure shares of Leggett & Platt. When rates dropped, LEG called in the bonds (they were callable) and we converted into LEG common, which then skyrocketed. And that's not counting the great dividends which rose just as fast.
I wouldn't expect a smooth ride for LEG which is dependent on imports from Asia with all that entails.
Do you care how your portfolio does or do you just like placing bets on stocks? Some people are in the latter category. They hang around terrible payout slots in casinos and all but the dumbest know they've lost and are likely going to continue losing due to the odds.
I'll share one of the most important things an investor can see. While this table below covers the period from 1993 thru 2013, it displays an eternal truth... most investors "Suck" at investing. They do VASTLY worse than the S&P 500 (it's way over on the table's left side). Studies of other periods, show the same trend.
Why do investors suck so terribly? 1) They chase fads; 2) They trade too often; 3) They fall for small cap scams; 4) And above all, they buy at market tops and sell in panic at bottoms. Index funds almost never do any of that.
--
I've had LEG, first as a convertible bond, then as the stock for decades.... a fabulous growth stock and div payer for several decades (but not so much lately)
Yes. And I did better than the index. Disclaimer: My investable funds rose and fell during those years. I would invest more when I could and sell to use some of the funds.
Was overly active, but it would be wrong to say I beat the index, because the index never sells a stock that did very well in a short time.
How long have you held LEG?
"All told?/ Over 250 Stocks over the past 15 years."
Have you ever calculated how much you'd have if you had put it all in a simple, cheap, efficient S&P 500 index fund?
I have traded many stocks. And I have held a much smaller amount
All told?/ Over 250 Stocks over the past 15 years.
How many stocks have you owned since you arrived on IHUB in 2005?
No, I sold LEG when the chart looked extended in November. But I have been watching it for a re-entry point.
LEG is trading on support right now.
Saw this article on LEG on Seeking Alpha.
Leggett & Platt Is Not Necessarily A Buy Right Now
Feb. 13, 2020 9:11 PM ET|
Summary
Leggett & Platt is a company with a strong market position and a well-balanced portfolio.
Company management has also set ambitious goals for the benefit of shareholders.
Nevertheless, there were also good reasons for me not to invest my money. Accordingly, the company is not a jewel or a necessary buy for me at this time.
Introduction
Leggett & Platt (NYSE: LEG) is a Dividend Aristocrat that has increased its dividend at least once a year for 47 years. I am always looking for such companies for my highly diversified retirement portfolio. Accordingly, I had considered investing in Leggett & Platt several times. I particularly liked the well-balanced portfolio and the experience of the management. Nevertheless, there were good reasons for me not to invest any money. The company is good, but as an income- or cash flow-oriented investor, there have always been better opportunities. This analysis will, therefore, mainly focus on why I do not consider the company a necessary buy or even a jewel at the moment.
Analysis
The reason why this company is interesting is because of its status as a leading manufacturer of products for everyday use. As I say this, investors have to take into account that the broad customer base of Leggett & Platt is mainly other manufacturers and not the consumers themselves:
(Source: Product Portfolio/Graph by author)
Looking at the share price performance of the last few years, however, the company has not outperformed overall. Of course, such a consideration always depends on the specific time frame, but this first historical view shows that an investment in an ETF would have been better here, simply because of the existing diversification:
ChartData by YCharts
An in-depth historical analysis of the dividend also shows that now is not a favorable time for dividend investors to buy shares of Leggett & Platt. If one takes the end-of-year returns as a benchmark and compares them with the current annual return of 3.56 percent, the following picture emerges:
(Source: Year-end yields/table by author)
Investors can easily see here that since 2000, only in five years has the end-of-year dividend yield been lower than it is now. This contrasts with 15 years with much higher yields. Especially around the time of the great economic crisis, there was a perfect time window for investors, when the company even showed double-digit dividend yields. In the meantime, there has also been no stock split that could have distorted the yield. Accordingly, the current time to invest solely because of the dividend seems unfavorable.
This would not be so bad if the company were to record high dividend growth. But here, too, the growth rates are declining in the mid-single digit range:
(Source: Annual payout growth (Yoy)/table by author)
Accordingly, the net common payout yield, a very useful metric for investors, is another indicator that shows that there have been better entry opportunities in recent years:
ChartData by YCharts
Company management targets an annual total shareholder return (TSR) of 11-14 percent, similar to the top third of the S&P 500. This would, of course, be a great deal for investors, because it means that their investment would double in less than 8 years. While no one knows the future, investors can only look back to assess if management has a track record of meeting its target. Given that, the picture changes a little bit, because the last time the company achieved this return on a 3-year CAGR basis was from 2013 to 2016:
(Source: Company Investor Day Presentation, November 18, 2019)
Accordingly, Leggett & Platt fell far short of the 2019 targets issued by management in 2016:
(Source: Company Investor Day Presentation, November 18, 2019)
Obviously, things went differently than expected. Earnings per share were lower primarily due to the Elite Comfort Solutions acquisition for USD 1.25 billion in 2018. The acquisition was also dilutive to EBIT due to amortization expenses. Furthermore, the margin was lower than expected in the Fashion Bed, Home Furniture, International Spring, and Automotive segments.
Furthermore, the balance sheet is not that great deal in my eyes. Leggett & Platt ended the last quarter with debt/adjusted EBITDA of 3.15, an improvement over the second quarter’s debt/adjusted EBITDA of 3.45. Now, it is targeting a debt/adjusted EBITDA of around 2.5 by the end of 2020. While I think 2.5 is still too high but far more reasonable, the company is a bit away from this as yet. To be fair, however, it must be said that the maturities speak against an existential threat. Debt and liabilities should, therefore, be easy to service.
(Source: Company Investor Day Presentation, November 18, 2019)
Besides, the company generates strong cash flow which should easily cover dividends and debt reduction. In the last quarter, operating cash flow was a strong USD 213 million, an increase of USD 86 million versus the same quarter in 2018.
Conclusion
After every analysis of a company, I will use a three-grade rating. Its purpose is to ensure that readers recognize at first glance whether a company might or might not be worth investing in. Here's the three-step rating at a glance.
Buy the jewel now rather than tomorrow if:
There are no downsides and the company has growth potential.*
The upsides outweigh the downsides and the company has enormous growth potential.
Worth an investment (maybe later after a second look) if:
The upsides outweigh the downsides.
The upsides are equal to downsides but the company has growth potential.
No thanks if:
No growth potential in the long term.
The downsides outweigh the upsides.
*Of course, the growth potential is a part of the upsides, but it is also crucial in my final considerations.
Conclusion: The grade for Leggett & Platt
Leggett & Platt is a company with a strong market position and a well-balanced portfolio. Management has set ambitious goals for the benefit of the shareholders. Being a Dividend Aristocrat also gives consistency and security in terms of future payouts. Nevertheless, there were good reasons for me not to invest my money. Accordingly, the company is not a jewel or a necessary buy for me at this time. These are the reasons for my grade:
Historically a rather low dividend yield.
Declining increases in payouts.
Management did not hit its targets issued three years ago.
Strong cash flow, but debt/adjusted EBITDA of over 3 leaves room for improvements.
As an income- or cash flow-oriented investor, there have always been better opportunities.
Do you still own LEG, Conix? Looks like you've moved away from rubbish small caps. Congrats
We Can't Lean On Legget & Platt At This Price
Jan. 21, 2020 3:39 PM ET
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Summary
I look back at one of my more successful investments for 2019 - Leggett & Platt. Since my last article the stock has more than doubled the S&P 500 performance.
While the company is fundamentally appealing, it's currently at overvaluation both in relation to earnings growth as well as to the historical market premium.
This makes any short-term/medium-term future upside dependent on a continued stock-based outperformance, which i consider uncertain. Leggett & Platt is now a "HOLD".
https://seekingalpha.com/article/4318140-cant-lean-on-legget-platt-this-price?ifp=0&utm_medium=email&utm_source=seeking_alpha
I own 18 stocks including LEG, index funds, a bunch of bonds and the like. The only thing I hawk online are index funds and a few investing texts. Much of what I post on IHUB is for my own benefit, such as dividend histories.
I'm a successful investor, not a pennyland crapshooter. GL with the LEG.
I love LEG, bar. I am going to buy tons of it RIGHT NOW because you have done so well in the past with it.
You are obviously a gifted, thin-skinned, investor who is easily shocked to find that people do not do initial due diligence on a stock and decide to immediately buy the stock despite what the price is.
Go LEG! Do not consider any other stock!
Feel better?
You'll probably find LEG a better stock than your MMRF from a few years back.
Your sarcasm best be reserved for those that do not know about when to enter a stock position.
Sorry you are so threatened by my personal reservation on buying "your" stock later --rather than right now.
Jeez.
Be Warned: Leggett & Platt IPOd in 1978 and their chart reveals a gap in 1979 right before a triple hammer candlestick Dogi death cross.
That gap will have to be filled according to a free pamphlet I found online. I'm worried that I may have to give back 40 years of dividends and reverse a bunch of old splits.
Here's LEG's 20-year Dividend Record. We've owned it a lot longer than that! Scroll down:
Sep 12, 2019 0.40 Dividend
Jun 13, 2019 0.40 Dividend
Mar 14, 2019 0.38 Dividend
Dec 13, 2018 0.38 Dividend
Sep 21, 2018 0.38 Dividend
Jun 14, 2018 0.38 Dividend
Mar 14, 2018 0.36 Dividend
Dec 14, 2017 0.36 Dividend
Sep 14, 2017 0.36 Dividend
Jun 13, 2017 0.36 Dividend
Mar 13, 2017 0.34 Dividend
Dec 13, 2016 0.34 Dividend
Sep 13, 2016 0.34 Dividend
Jun 13, 2016 0.34 Dividend
Mar 11, 2016 0.32 Dividend
Dec 11, 2015 0.32 Dividend
Sep 11, 2015 0.32 Dividend
Jun 11, 2015 0.31 Dividend
Mar 11, 2015 0.31 Dividend
Dec 11, 2014 0.31 Dividend
Sep 11, 2014 0.31 Dividend
Jun 11, 2014 0.30 Dividend
Mar 12, 2014 0.30 Dividend
Dec 11, 2013 0.30 Dividend
Sep 11, 2013 0.30 Dividend
Jun 12, 2013 0.29 Dividend
Mar 13, 2013 0.29 Dividend
Dec 06, 2012 0.29 Dividend
Sep 12, 2012 0.29 Dividend
Jun 13, 2012 0.28 Dividend
Mar 13, 2012 0.28 Dividend
Dec 13, 2011 0.28 Dividend
Sep 13, 2011 0.28 Dividend
Jun 13, 2011 0.27 Dividend
Mar 11, 2011 0.27 Dividend
Dec 13, 2010 0.27 Dividend
Sep 13, 2010 0.27 Dividend
Jun 11, 2010 0.26 Dividend
Mar 11, 2010 0.26 Dividend
Dec 11, 2009 0.26 Dividend
Sep 11, 2009 0.26 Dividend
Jun 11, 2009 0.25 Dividend
Mar 11, 2009 0.25 Dividend
Dec 11, 2008 0.25 Dividend
Sep 11, 2008 0.25 Dividend
Jun 11, 2008 0.25 Dividend
Mar 12, 2008 0.25 Dividend
Dec 12, 2007 0.25 Dividend
Sep 12, 2007 0.18 Dividend
Jun 13, 2007 0.18 Dividend
Mar 13, 2007 0.17 Dividend
Dec 13, 2006 0.17 Dividend
Sep 13, 2006 0.17 Dividend
Jun 13, 2006 0.17 Dividend
Mar 13, 2006 0.16 Dividend
Dec 13, 2005 0.16 Dividend
Sep 13, 2005 0.16 Dividend
Jun 13, 2005 0.16 Dividend
Mar 11, 2005 0.15 Dividend
Dec 13, 2004 0.15 Dividend
Sep 13, 2004 0.15 Dividend
Jun 14, 2004 0.14 Dividend
Mar 11, 2004 0.14 Dividend
Dec 11, 2003 0.14 Dividend
Sep 11, 2003 0.14 Dividend
Jun 11, 2003 0.13 Dividend
Mar 12, 2003 0.13 Dividend
Dec 11, 2002 0.13 Dividend
Sep 11, 2002 0.13 Dividend
Jun 12, 2002 0.12 Dividend
Mar 13, 2002 0.12 Dividend
Dec 12, 2001 0.12 Dividend
Aug 22, 2001 0.12 Dividend
May 23, 2001 0.12 Dividend
Feb 28, 2001 0.12 Dividend
Nov 21, 2000 0.11 Dividend
Aug 23, 2000 0.11 Dividend
May 17, 2000 0.10 Dividend
Feb 23, 2000 0.10 Dividend
Nov 23, 1999 0.09 Dividend
Aug 25, 1999 0.09 Dividend
May 26, 1999 0.09 Dividend
Feb 24, 1999 0.09 Dividend
Nov 24, 1998 0.08 Dividend
Aug 19, 1998 0.08 Dividend
I am considering taking an initial position after its consolidation for a long term hold. The dividend is attractive and they are diversified. Their dividend growth is impressive.
I just expect about a 10% decline from current levels.
GLTU
LEG is pedigreed stock (like all my holdings) but vulnerable to tariff uncertainty. I've made huge profit from it over the decades it's been in my family. At one time it was largely unknown to the investing masses. As a "dividend aristocrat," LEG -- located in the boondocks of Missouri -- now gets ample attention.
LEG is one of 18 blue chips I hold.
Not yet. Expecting a pullback to about $48. That recent run has to be consolidated, imo.
Do you own LEG?
LEG Investment Highlights:
*3rd Qtr. 2019 - $1.24 billion in sales; $0.74 EPS
*Goal - Maintaining TOTAL SHAREHOLDER RETURN in top 1/3 of S&P500
*3% Dividend Yield - 48 Consecutive Annual Increases
*Strong Balance Sheet and Cash Flow
*Leader in Most Markets, few Large Competitors
*Management is significantly invested with compensation plan
*Product Mix - 47% Bedding; 17% Automotive; 17% Flooring & Textiles, 14% Furniture; Aerospace 3%
*2/3 Production is U.S.; 1/3 Foreign
Symbol: LEG
Price: $52.40
Market Cap: $7.1 Billion
TRADES: NYSE
Profile:
COMPANY DESCRIPTION: Leggett & Platt (NYSE: LEG) is a Fortune 500 diversified manufacturer that conceives, designs and produces a broad variety of engineered components and products that can be found in virtually every home, office, retail store, and automobile. The company serves a broad suite of customers that comprise a "Who's Who" of U.S. manufacturers and retailers. The 122-year-old firm is composed of 29 business units, 33,000 employee- partners, and more than 300 facilities located in over 20 countries.
website: www.leggett.com/
LEG soars on series of earnings beats.
"Legget & Platt (LEG) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.67 per share a year ago. These figures are adjusted for non-recurring items.
"This quarterly report represents an earnings surprise of 13.43%. A quarter ago, it was expected that this engineered component manufacturer would post earnings of $0.63 per share when it actually produced earnings of $0.64, delivering a surprise of 1.59%.
"Over the last four quarters, the company has surpassed consensus EPS estimates three times."
https://www.yahoo.com/finance/news/legget-platt-leg-q3-earnings-212509206.html
Looks like a lot of insider buying here as of late too.
Surprise! LEG shares aren't moving but the dividend rose again. 0.38 to 0.40.
Just noticed my LEG increased its div again: $0.38 quarterly.
LEG near record high. 6.3% div increase. Yield 2.79%. Very long history of increasing the dividend.
"Leggett & Platt (NYSE:LEG) declares $0.34/share quarterly dividend, 6.3% increase from prior dividend of $0.32."
Weeee easy $ I called 3.17 today was of by .02
$LEG ~ broke 2.80 ~ technical breakout could we see 4.00 within the next 60 days ;)
$LEG What a BEAST pow pow booommmmshakalaka
Earnings
second quarter earnings from continuing operations were $0.44 per share, up 13% versus the $0.39 per share from continuing operations in the second quarter of 2012
http://www.earningsimpact.com/Transcript/82315/LEG/Leggett-and-Platt%2c-Inc----Q2-2013-Earnings-Call
LEG: Q4 Adj EPS $1.7 vs 22c Beats 29c Est
Monday , February 04, 2013 16:09ET
QUARTER RESULTS
Leggett & Platt Inc (LEG) reported Q4 results ended December 2012. Q4 Revenues were $853.00M; -0.13% vs yr-ago; MISSING revenue consensus by -2.25%. Q4 EPS was 50c. Adjusted Q4 EPS was $1.70; +672.73% vs yr-ago; BEATING earnings consensus by +486.21%.
Q4 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $853.00M $854.10M -0.13% $872.66M -2.25%
---------- ------------ ------------ ---------- ------------ ----------
EPS: 50c N/A N/A N/A N/A
Adj EPS: $1.70 22c +672.73% 29c +486.21%
---------- ------------ ------------ ---------- ------------ ----------
FY RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $3,720.80M $3,636.00M +2.33% $3,740.46M -0.53%
---------- ------------ ------------ ---------- ------------ ----------
EPS: $1.68 N/A N/A N/A N/A
Adj EPS: $1.46 $1.20 +21.67% $1.49 -2.01%
---------- ------------ ------------ ---------- ------------ ----------
~ $LEG ~ Earnings posted, pending or coming soon! In Charts and Links Below!
~ $LEG ~ Earnings expected on Monday *
This Week In Earnings: Earnings are coming or are already posted! This is what the charts look like! If you play the earnings these posts can be very helpful to you!
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.
http://stockcharts.com/h-sc/ui?s=LEG&p=D&b=3&g=0&id=p88783918276&a=237480049
http://stockcharts.com/h-sc/ui?s=LEG&p=W&b=3&g=0&id=p54550695994
~ Barchart: http://barchart.com/quotes/stocks/LEG?
~ OTC Markets: http://www.otcmarkets.com/stock/LEG/company-info
~ Google Finance: http://www.google.com/finance?q=LEG
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=LEG#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=LEG+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=LEG
Finviz: http://finviz.com/quote.ashx?t=LEG
~ BusyStock: http://busystock.com/i.php?s=LEG&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=LEG&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=LEG
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=LEG
~ Investorshub PostStream Search: http://investorshub.advfn.com/boards/poststream.aspx?ticker=LEG
~ Investorshub Goodies Search: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18582&srchyr=2011&SearchStr=LEG
~ Investorshub Message Search: http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=LEG
~ MarketWatch: http://www.marketwatch.com/investing/stock/LEG/profile
~ E-Zone Chart: http://www.windchart.com/ezone/signals/?symbol=LEG
~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=LEG
~ 10-Min Wind: http://www.windchart.com/stockta/analysis?symbol=LEG&size=l&frequency=10&color=g
~ 30-Min Wind: http://www.windchart.com/stockta/analysis?symbol=LEG&size=l&frequency=30&color=g
~ 60-Min Wind: http://www.windchart.com/stockta/analysis?symbol=LEG&size=l&frequency=60&color=g
http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916
*If the earnings date is in error please ignore error. I do my best.
Leggett & Platt, Incorporated is an international diversified manufacturer that conceives designs and produces a range of engineered components and products found in many homes, offices, retail stores and automobiles. The Company’s operations are organized into 19 business units, which are divided into 10 groups under four segments: Residential Furnishings, Commercial Fixturing & Components, Industrial Materials, and Specialized Products. The Residential Furnishings segment includes Bedding Group, Furniture Group, and Fabric and Carpet Underlay Group. The Commercial Fixturing & Components segment includes Fixtures & Display Group, and Office Furniture Components Group. The Industrial Materials segment includes Wire Group and Tubing Group. The Specialized Products segment includes Automotive Group, Machinery Group and Commercial Vehicle Products Group. On December 20, 2011, the Company acquired Western Pneumatic Tube Holding, LLC.
http://www.google.com/finance?q=LEG
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